Homestead Property Tax Credit Deadline

The Montgomery County Council is reminding homeowners that they must submit a one-time application with the Maryland State Department of Assessments and Taxation (SDAT) by Dec. 31 to establish eligibility to the Homestead Property Tax Credit. The credit limits the amount of assessment on which a homeowner actually pays taxes on their principal residence. The credit does NOT apply to rental or vacation properties.

The Homestead Tax Credit was created to assist homeowners with the fiscal impact from large assessment increases. The program limits the annual taxable assessment increase to 10 percent a year in Maryland. For example, if the annual phase-in of assessment growth is 25 percent, the homestead credit will reflect 15 percent while the remaining 10 percent is reflected in taxable assessment growth that year.

If an application is not submitted by Dec. 31, 2012, the Homestead Tax Credit will be disallowed beginning with the July 1, 2013 tax year bill. Homeowners who have already applied for the tax credit do not have to apply again.

Homeowners who purchased their dwellings before Jan. 1, 2008 (including those who received the credit in the past) must file to continue receiving the credit.

The application form was included in the assessment notice mailed to one-third of the homeowners at the end of December in each of 2008, 2009 and 2010, as their assessments came up for renewal. Homeowners received their credits through December 31, 2012, via a grace period.

SDAT offers three choices to apply for the tax credit:

  1. File electronically: Call 410-767-2165 or toll free 1-866-650-8783 or e-mail to hcredit@dat.state.md.us requesting an application be mailed out to you. Be sure to include in your e-mail your street address for the property and the specific County where the property is located. This form will include the Property Account Number and a special “Access Number” that will enable you to file the form electronically and receive back an e-mail confirmation receipt. To access the form, go to: https://sdathtc.resiusa.org/homestead
  2. Mail the application: You may also mail in the completed paper application the Department sends you, but will not receive a confirmation receipt. Print and mail the completed application that can be found on the web site at https://sdathtc.resiusa.org/homestead. Applications must be postmarked by Dec. 31, 2012.
  3. Fax the application: Fax in the completed paper application to SDAT at 410-225-9344. Applications must be faxed by Dec. 31, 2012.


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